Rethinking Organizational Ethical Culture: A Critical Examination of the Conceptual Domain, Assessment of Levels of Analysis, and a Revised Theoretical Model

Organizational ethical culture, though widely studied, lacks conceptual clarity and precision with levels of analysis. To diagnose the specific conceptual and levels limitations, we assess the state of the science of ethical culture by analyzing 155 articles. Analysis revealed conceptual disorganization, confusion between the conceptual domain and nomological network, and imprecise treatment of levels of analysis. These limitations have resulted in downstream problems with building and testing theory; existing research is affected by unfalsifiable hypotheses, conceptual invalidity, contamination among measures, and incorrect levels-based inferences. To help overcome these limitations, we present a revised definition that integrates the dynamic model of organizational culture with the concept of ethical affordances. We present a multilevel model and describe potential interactions that determine how and under what conditions ethical culture manifests at relevant levels. We conclude with recommendations that will help future research move past these limitations.